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Guoco Group Limited Earnings Release 2001
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Download source fileFAR EAST HOTELS AND ENTERTAINMENT LIMITED
(Incorporated in Hong Kong with limited liability)
Announcement Of Final Results
For The Year Ended 31 March 2001
RESULTS
The Board of Directors of Far East Hotels And Entertainment Limited (the "Company") announces the audited consolidated financial results of the Company and its subsidiaries (the "Group") for the year ended 31 March 2001. This audited consolidated financial results has been reviewed by the Company's audit committee.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2001
Year ended 31 March
2001 2000
Notes HK$ HK$
Turnover 1 27,703,290 36,486,184
Cost of sales (25,591,960 ) (30,020,884 )
2,111,330 6,465,300
Administrative expenses (11,658,393 ) (11,816,158 )
Other operating expenses (1,582,972 ) (1,582,972 )
Deficit arising on revaluation of investment properties (1,000,000 ) -
Surplus arising on revaluation of hotel property 157,781 1,555,588
Loss from operations (11,972,254 ) (5,378,242 )
Finance costs (3,998,746 ) (5,620,486 )
Share of results of associates (3,400,613 ) 409,118
Loss before taxation (19,371,613 ) (10,589,610 )
Taxation credit 2 - 95,362
Loss before minority interests (19,371,613 ) (10,494,248 )
Minority interests 1,030,769 (263,269 )
Net loss for the year (18,340,844 ) (10,757,517 )
Loss per share-Basic 3 (3.75 Cents ) (2.20 Cents )
Notes:
1. Turnover and contribution to results from operations
By principal activity:
Contribution to results
Turnover from operations
Year ended 31 March Year ended 31 March
2001 2000 2001 2000
HK$ HK$ HK$ HK$
Hotel operation 9,637,584 8,673,865 1,612,355 1,701,019
Property rental 9,761,790 11,451,303 (2,934,782 ) (1,500,970 )
Securities trading and investments 2,680,264 10,711,822 (2,189,895 ) 616,057
Interest income 5,623,652 5,649,194 5,623,652 5,649,194
27,703,290 36,486,184 2,111,330 6,465,300
Less:
Administrative expenses (11,658,393 ) (11,816,158 )
Other operating expenses (1,582,972 ) (1,582,972 )
Deficit arising on revaluation of
investment properties (1,000,000 ) -
Surplus arising on revaluation of
hotel property 157,781 1,555,588
Loss from operations (11,972,254 ) (5,378,242 )
Finance costs (3,998,746 ) (5,620,486 )
Share of results of associates (3,400,613 ) 409,118
Loss before taxation (19,371,613 ) (10,589,610 )
By geographical location of operation:
Contribution to results
Turnover from operations
Year ended 31 March Year ended 31 March
2001 2000 2001 2000
HK$ HK$ HK$ HK$
Hong Kong 17,941,500 25,209,781 4,422,883 7,527,898
Other regions in the People's
Republic of China ("PRC") 9,761,790 11,276,403 (2,311,553 ) (1,062,598 )
27,703,290 36,486,184 2,111,330 6,465,300
Less:
Administrative expenses (11,658,393 ) (11,816,158 )
Other operating expenses (1,582,972 ) (1,582,972 )
Deficit arising on revaluation of
investment properties (1,000,000 ) -
Surplus arising on revaluation of
hotel property 157,781 1,555,588
Loss from operations (11,972,254 ) (5,378,242 )
Finance costs (3,998,746 ) (5,620,486 )
Share of results of associates (3,400,613 ) 409,118
Loss before taxation (19,371,613 ) (10,589,610 )
2. Taxation
No provision for Hong Kong Profits Tax has been made in the financial statements as the Company and its subsidiaries incurred tax losses for the year. The taxation credit in 2000 represented overprovision of Hong Kong Profits Tax in previous years.
3. Loss Per Share
(a) Basic loss per share
The calculation of basic loss per share is based on the Group's loss attributable to shareholders of HK$18,340,844 (2000: HK$10,757,517) and on the 488,842,675 (2000: 488,842,675) shares in issue during the year.
(b) Diluted loss per share
No diluted loss per share has been presented because the exercise prices of the outstanding share options of the Company were greater than the average market price of shares for each of the two years ended 31 March 2000 and 2001.
Dividends
The Board has resolved not to recommend the payment of any dividend for the year (2000: Nil).
BOOK CLOSURE
The register of members of the Company will be closed from 14 August 2001 to 17 August 2001 (both days inclusive), during which period no transfer of shares will be effected. In order to qualify for attending the Annual General Meeting, all transfers accompanied by the relevant share certificates must be lodged with Standard Registrars Limited, the Registrars of the Company , at 5th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong not later than 4:00pm on 13 August 2001.
REVIEW OF OPERATIONS
The Company has revised its strategy on Cheung Chau Warwick Hotel ("CCWH"), and CCWH had shifted to expand its food and beverage section and had successfully captured more local catering business with turnover on food and beverage division increased by 33% over last year.
Beijing Warwick International Apartments ("BWIA") faced recession in its turnover that was caused by the infrastructure works done by the government of Beijing city in the nearby vicinity. It is anticipated upon completion of the infrastructure works, the widening of the Second Ring Road and the opening of the Beijing Transit Railway's entrances adjacent to BWIA, BWIA may be able to recover its business.
Loss in securities trading and investment was mainly due to a provision made for diminution in value of securities held of approximately HK$2.3 million.
Our overseas associated company, which owns the Old Sydney Town Theme Park in Australia, suffered loss mainly due to the dramatic fluctuation of the Australian dollars. The Group shared a loss of approximately HK$3.4 million.
The finance cost has decreased by approximately HK$1.6 million when comparing with prior year, which was due to rearrangement of credit facilities of the Group.
The Group has approximately 130 employees. Employees are remunerated according to nature of the job and market trend, with build-in merit component incorporated in the annual increment to reward and motivate individual performance.
FINANCE ACTIVITIES
At the balance sheet date, the Group had bank loans and overdraft facilities amounting to HK$71,468,853 (2000: HK$103,232,665), of which HK$53,569,961 (2000: HK$50,255,793) were utilised. These facilities were secured by legal mortgages over the Group's properties and deposits with an aggregate net book value of HK$58,362,430 (2000: HK$18,244,983) and HK$2,283,911 (2000: HK$3,854,937) respectively.
Shareholders' funds at 31 March 2001 amounted to approximately HK$607 million (2000: approximately HK$623 million). Accordingly, the Group's gearing ratio (total bank loans and overdraft facilities utilized to shareholders' funds) at 31 March 2001 is 9% (2000: 8%).
PROSPECTS
The joint venture redevelopment project with Cheung Kong (Holdings) Limited at Kau Wah Keng, Lai Chi Kok, Kowloon, now named Nob Hill, has been progressed smoothly and pre-sale consent was obtained in late June, 2001. Upon approval, Central More Limited, the developer and joint venture company, immediately launched Nob Hill in the market and the initial response was encouraging.
As the project is expected to be completed in or about July 2002, the directors are confident to sell all the 696 residential units before completion of the development. It is anticipated that upon successful sale of all residential units, Central More Limited will have a total revenue of approximately HK$2,200 million.
PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES
During the year ended 31 March 2001, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities.
CODE OF BEST PRACTICE
The Company has complied throughout the year ended 31 March, 2001 with the Code of Best Practice as set out in Appendix 14 of the Rules Governing the Listing of Securities ("Listing Rules") on The Stock Exchange of Hong Kong Limited ("Stock Exchange").
DISCLOSURE UNDER PRACTICE NOTE 19 TO THE LISTING RULES
As at 31 March 2001, the Group advanced a total of approximately HK$187 million to an associate, Central More Limited. The balance due includes land transferred of approximately HK$136 million and accumulated accrued interest charged thereon of approximately HK$51 million. The balance is interest bearing at the Hong Kong Prime Rate, unsecured and has no fixed repayment term.
The Group also pledged its entire equity interests in this associate to secure the banking facilities for construction cost and related expenses of HK$425 million granted to the associate.
PUBLICATION OF THE ANNUAL RESULTS ON THE INTERNET WEBSITE OF THE STOCK EXCHANGE
The financial and other information required by Paragraphs 45(1) to 45(3) of Appendix 16 of the Listing Rules will be published on the website of the Stock Exchange in due course.
On behalf of the Board
Derek Chiu
Managing Director & Chief Executive
Hong Kong, 13 July 2001
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the Annual General Meeting of the Company will be held at Penthouse, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong on Friday, 17 August, 2001 at 3:00p.m. for the following purposes:
-
To receive and consider the audited financial statements and the reports of the directors and auditors for the year ended 31 March 2001.
-
To elect directors and to fix their fees.
-
To appoint auditors and to authorise the directors to fix their remuneration.
- To transact any other ordinary business.
By Order of the Board
Sung-Ki Tang
Secretary
Hong Kong, 13 July 2001
Notes:
-
Any member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and, on a poll, vote instead of him. A proxy need not be a member of the Company.
-
In order to be valid, the form of proxy, together with any power of attorney or other authority (if any) under which it is signed, or a notarially certified copy of that power of authority, must be lodged with the registered office of the Company as Suite 2806, 28th Floor, Great Eagle Centre, 23 Harbour Road, Wanchai, Hong Kong not less than 48 hours before the time appointed for holding the meeting.
Please also refer to the published version of this announcement in the Hong Kong iMail.